Asunción – The president of the Government, Pedro Sánchezhas insisted that if the EU cannot reach a negotiated solution with the United States regarding the tariffs that the Administration of Donald Trump threatens to impose, a European fund should be created to help the companies that are most affected.
He made this statement during the closing of a Spain-Paraguay business forum during his official visit to Asunción, where, as he did the day before in Montevideo, he reiterated the need to finalize the agreement between the EU and Mercosur, the bloc to which these two countries belong, in the context of the trade war that Trump is imposing.
The governments, the president said, must defend their companies. In this regard, in recent years the EU has agreed on “trade defense instruments to ensure a level playing field,” among which he mentioned the regulation on subsidies and the anti-coercion instrument.
In light of the 30% tariff threat announced by Trump starting August 1, which he again labeled as “unfounded and unfair,” Sánchez insisted that Europeans cannot remain “with their arms crossed” and must offer a joint response.
The goal, the president reiterated, is to “avoid a trade war.” “But if it occurs, Europe must be up to the expectations of our companies,” he emphasized.
“That is why we believe that the revenues derived from any countermeasure” agreed upon by the EU “should be allocated to the creation of a new European fund to assist the sectors most affected by these trade tensions,” Sánchez claimed, in line with the position that the Minister of Economy, Carlos bodyhas been advocating.
Defense of the agreement with Mercosur
On the other hand, he emphasized that to “face the advance of protectionism,” the EU must partner and work “shoulder to shoulder with strategic and reliable partners.” This is where the signing of the agreement between the EU and Mercosur, still awaiting ratification, would constitute a “fundamental milestone,” he assessed, in addition to being a “political message” of understanding and shared objectives.
“We need to defend the multilateral order based on rules more than ever, strengthen international cooperation, and reinforce regional cooperation,” the head of the Executive elaborated, thanking the “good work of the president of Paraguay so that we can be in optimal conditions” for the agreement to be possible.
Sánchez also wanted to highlight the “excellent economic and commercial relations” between the two countries, which helped boost Peña’s visit to Spain last February, and he expressed confidence that now his visit, accompanied by more than a dozen businesspeople, will also give a new impetus.
For his part, Peña also referred to the agreement with Mercosur, expressing his “eagerness and fervent desire” for it to be concluded. It is, the Paraguayan president said, “much more than a trade agreement.”
“It is much more than finding opportunities for commercial or economic exchange; it is the opportunity to send a message, a message in a polarized world, in a divided world, in a world where the drums of war, whether wars with bullets or wars with tariffs, seem to want to silence the clarinets of peace, those of us who want peace, more integration, because we are convinced that there is no future in the world except through collaboration between nations, in a respectful manner,” he asserted. (July 23)
